Employers with certain federal construction, service and concession contracts must be prepared to pay an increased hourly minimum wage starting January 1, 2018. On this date, the minimum wage rate for employees performing work on covered contracts will increase from $10.20 per hour to $10.35 per hour. The minimum wage rate for tipped employees will increase from $6.80 per hour to $7.25 per hour.
Employers with federal contracts should review those agreements to determine if they are covered by Executive Order 13658 and subject to the increased minimum wage rate.